National Veterinary Care snaps up new vet buying chain as it takes new bit of petcare market

ACQUISITION-hungry National Veterinary Care has snapped up another purchase, picking up a Gold Coast-based vet buying business.

Tomas Steenackers, CEO, and Katherine Baker, CFO of National Veterinary Care which has added a fresh acquisition. Picture: Jono Searle.

ACQUISITION-hungry National Veterinary Care has snapped up another purchase, picking up a Gold Coast-based vet buying business.

The listed Ormeau-based company late yesterday said it had acquired United Vets Group, a leading veterinary procurement company.

The $5.93 million cash and shares purchase includes $0.59 million in NVL shares and $0.29 million in deferred cash.

The acquisition is aimed at securing National Veterinary Care a larger slice of the $2.4 billion veterinary care industry.

Mudgeeraba-based UVG has operated for more than a decade and works with more than 250 veterinary clinics across Australia.

Founded by former vet Sam Bowden in 2006, UVG was established to form a buying group to give vets greater control over what they pay for supplies.

It evolved from a buying group to increase profits into a program showing vets how to reduce stress, increase motivation and deliver improved customer service.

The UVG purchase follows a rapid acquisition spree for NVC which is aiming to be the leading provider of veterinary services in Australia and New Zealand.

Since listing last August, the company has picked up 41 Australian vet clinics, introduced a

wellness program, Best for Pet, and has built a new training facility at Ormeau where it uses pet cadavers to upskill vets and nurses from its own clinics and others.

NVC, made up of a host of defectors from listed vet services and pet retailer Greencross, is hoping to not just nip at the heels of but improve on the success of its larger rival.

It said the UVG acquisition is expected to deliver annual revenue of $2 million and EBIT of $1.07 million.

The acquisition is expected to be earnings per share accretive in the 2017 financial year.

Hunter Green’s Charlie Green said the UVG buy was a “strategic fit” for National Veterinary Care and a good lateral move which “allows the vet provider to get a look at more than 250 extra vet clinics which may one day join the NVC fold”.

Hunter Green has a valuation of $1.96 on NVL shares and has recommended the stock as a buy.

NVL shares closed 3.47 per cent higher, at $1.34.